Get control of your life back. Work full-time or part-time. Earn more, enjoy freedom and flexibility.
Do you want more time, increased income and freedom?
Being self-employed is challenging, but it can also be very rewarding. In today’s economy, self-employed people often have the greatest job security.
The reward of entrepreneurship is independence, financial freedom and more. Imagine creating your own secure source of income–with unlimited potential! You can establish a great new home-based business that can be part-time or full-time… and even grow into a bricks and mortar business. The choice is yours, and always will be when you’re a business owner.
Benefits of starting a tax business
- Earn $100/hour or more as an experienced pro
- Reduce your own tax liability
- Your skills will make you more marketable
- Work 3 months of the year and make a great income
- Have your summers and holidays free
- Be more secure – you control your own destiny
- Start at home with minimal expenses
It’s easier and less expensive than you think!
- Minimal start-up costs
- Get your tax business started quickly
- No franchise fees or royalties
- No accounting background or degree required
- We teach you everything you need to know and do it faster than you think!
- No need to reinvent the wheel – we offer tax manuals on policies and procedures, tax preparation marketing, personnel and expansion
Huge growth potential
Millions of Americans pay a tax professional to prepare and file their tax return every year and Congress continues to make more changes to the tax code. These changes make taxpayers even more confused and frustrated and they are seeking out the help of Tax Professionals more than ever.
As the number of taxpayers continues to grow, so does the need for qualified Tax Professionals. And now, with the recent changes to the U.S. economy, it’s more important than ever for taxpayers to claim all of the credits and deductions due them and pay no more than the exact amount of taxes they owe. Starting your own tax business will enable you to meet this growing demand and also give you the flexibility and security you deserve.
Better than a franchise
Here are just some of the reasons why starting your own tax preparation business makes better sense than buying into a tax business franchise. Having your own tax business means:
- AVOID costly start up fees
- AVOID royalty payments
- AVOID issues with financing assistance
- AVOID geographic restrictions
- AVOID issues with franchisor legal recourse should something go wrong
- CREATIVE CONTROL – you get to do things your way
- NO contract requirements–do you know what you’ll be doing years from now?
- NO problems with insufficient support from the franchisor
- REASONABLE COSTS for supplies—no franchisor mark-ups
- FREEDOM for non-compete provisions should you want out of the franchise
- AVOID advertising fees that may not help your franchise
- AVOID losing your business due to unreasonable termination of your franchise
Like working with people and computers? Tax preparation is a great business for you!
Stay-at-home parents and early retirees find this to be a wonderful complement to their lives. It enables you to still have your holidays and summers free to be with the kids or grandkids, it allows you to travel, etc.
Retired military people looking for a second career can establish a business that allows them to work for as many years as they want.
Financial services professionals can add tax preparation expertise to their available services, offering more value to their clients.
No need to be a CPA or a numbers person to be a successful tax professional
Myth #1: “You need to be a CPA or have an accounting degree to be a Tax Professional.”
Many people shy away from taxes because they think it will be too difficult and you must be a Certified Public Accountant (CPA) or have an accounting degree, or the equivalent. The truth is you really don’t have to be an accountant to be a tax professional. While having an aptitude for dealing with figures is essential, high level knowledge of math and finance are not necessary and tax preparation is not accounting, it’s law. You don’t even need to have a college degree to prepare taxes.
Then what DO you need?
You will need to take at least one tax preparation course to give you a solid foundation in individual tax. In addition, a new voluntary IRS Annual Filing Season Program (AFSP) recommends that you also take a 6-hour Annual Federal Tax Refresher Course (AFTR) with a 100 question competency test to confirm your tax knowledge. To receive a Record of Completion from the IRS for this program, you must also complete 12 additional hours of continuing education. The 6-hour AFTR Course and CE is a voluntary annual program of the IRS. Continuing education is a great thing as it will help you increase your tax knowledge and remain current with the tax code. If you wish to prepare business tax returns, you will also need to take a tax course on small business income tax. Learn more about the new AFSP program.
Our beginner tax preparation course assumes no prior tax knowledge and the tax preparer software available today makes tax preparation a lot easier. That being said, tax preparer software is NOT a substitute for tax knowledge. It’s extremely important that you are able to complete tax returns by hand as the computer programs don’t always think of everything. You should never rely on any tax software program to train you or to prepare a tax return for you accurately. It should simply be used as a tool to improve your service and make you more efficient.
Myth #2: “Tax Preparation is for ‘numbers’ people.”
It’s amazing how many people think that tax preparation is all about the numbers, but that’s not all. Tax preparation is actually a people business. So, if you enjoy working with people, you could do very well in the tax business. It’s about building relationships and trust.
Yes, it is extremely important that you have the knowledge to prepare taxes accurately. But the experience that your clients have during the tax preparation process and after is just as important. When you are dealing with a client’s financial information it becomes very personal. Your client trusts you to take good care of him/her and hopes you have their best interests in mind. Your client is looking for guidance and has come to you because they see you as an expert in the tax industry. You could prepare a client’s tax return perfectly but if you don’t provide personal service, they may not be back. Relationships are paramount!
High income potential
Having a home-based tax business can be very lucrative.
The amount of money you can make will depend on your market and how easily you can attract clients. With a tax preparation home business, you will have very little overhead; therefore, you have the ability to charge less than your competition.
- An experienced independent tax professional can earn up to $100 per hour
- That’s $5,000 per week for a 50-hour week, or $60,000 for the 3 month tax season!
You won’t likely earn that much during your first tax season because you will still be learning and recruiting new clients. But by marketing effectively and providing excellent client service, you can grow through high client retention and referrals and quickly attain that level of income for just 3-months work, and continue to grow your tax business!
What’s even more exciting is that as your business grows through new clients and referrals, your future earnings potential is much greater! Plus, you can enjoy your summers and holidays because most of your business in generated during the concentrated filing season from mid-January through mid-April. Or, you could consider providing other services for your tax clients and generate income year-round!
Additional revenue stream
Due to recent changes in the economy, many people are looking for additional revenue streams in order to maintain their current lifestyles. A home-based tax business can supplement your income, pay the bills, enable you to save for retirement, and more.
Your income tax business can be a stand-alone business, or you may find it to be a complimentary business that can be added to another business that you are already involved in, such as
- financial services
- accounting or bookkeeping
Your clients will appreciate having one person that can handle their finances.
A tax preparation business is also great to get into if you happen to work in another field that is also seasonal – but at a different time of the year – such as
- real estate
- lawn care
A tax preparation business can provide you with a steady income year-round.
Year-round income opportunities
As the trusted tax advisor to your tax clients, you are in the position to provide them with the additional financial services they need. By obtaining the required licenses, you can provide financial services and products such as IRAs, retirement plans, insurance, etc. You can choose from several reputable broker-dealers that specialize in helping tax professionals to meet their clients’ financial service’s needs.
You can also provide bookkeeping and payroll services for your small business tax clients to produce additional year-round revenue. Thousands of small businesses are started every day and the trend is accelerating due to the large number of displaced workers turning to self-employment.
Other opportunities to generate year-round revenue exist, such as becoming a real-estate broker to take advantage of the inevitable recovery of the housing market in the coming years. Income tax knowledge is a great asset for many financial services professionals and having tax expertise will provide you with a key competitive advantage.
Minimal start-up costs
Starting a home-based tax business can be done very inexpensively. Since you will have very little overhead, you can charge less than your competition and still make a great profit.
Home-based Tax Business Start-up Cost (assuming you already have a PC and printer):
- Comprehensive Tax Course with Business Start-up Package – $497
- IRS registration to become a Tax Preparer – $50
- Voluntary IRS Annual Filing Season Program – around $100 or less
- Professional tax preparation software – (lower cost options are available) $500
- Tax preparation Marketing and Tax Office Supplies – $500
The main things you will need are:
- Tax preparation training
- A computer
- Other equipment, such as a printer, copier, scanner, fax machine
- Internet service
- Professional tax preparation software
- Office supplies
- Business cards
- A Preparer Taxpayer Identification Number (PTIN) from the IRS
- An Electronic Filers Identification Number (EFIN) from the IRS (no cost)
- Consider completing the IRS voluntary Annual Filing Season Program and receive an Annual Federal Tax Refresher Record of Completion
- Fast refund products – if you want to offer them
Fast ramp-up time
Starting your own home-based tax preparer business is easier than you think. The most important thing you need is good solid tax knowledge, which is available online, 24/7 with instructor support right here at The Income Tax School!
After successfully completing the 60-hour Comprehensive Tax Course at The Income Tax School, (most finish in just 10 weeks or less) you will be qualified to prepare individual tax returns for almost all U.S. taxpayers. IMPORTANT: The IRS has developed a voluntary program for tax preparers to ensure that they have a minimum competency level each year and to continue their education each year. Non-exempt tax preparers who do not complete this program will not be able to represent their tax clients before the IRS, should an issue arise. Learn more about the new Annual Filing Season Program (AFSP).
If you choose to complete the AFSP program, then you must register as a tax preparer and take 15 hours of continuing education each year going forward. Continuing education is a great thing as it will help you increase your tax knowledge and remain current with the tax code. If you wish to prepare business tax returns, you will also need to take a tax course on small business income tax. The Small Business I Tax Course (most students finish in just 5 weeks or less) at The Income Tax School will meet the small business requirements for the IRS exam. Once you are a registered Tax Preparer you will have your own home-based tax preparer business up and running in a very short time!
Launch your own tax business in weeks – no franchise fees or royalties
It’s easy to go into business for yourself.
- Step 1: Register for the Comprehensive Tax Course
- Learn to prepare tax returns & research tax issues for most Form 1040 individual, non-business taxpayers and small business taxpayers (self-employed/Schedule C).
- CTEC and OBTP Approved. Includes Certificate of Completion and FREE AFTR Course.
- Step 2: Add the Guide to Start & Grow Your Successful Tax Business to help launch your tax business quickly
- Topics Include:
- Learning Tax Preparation & Obtaining Credentials
- Developing a Business Plan
- Risk Management
- Getting Started as a Tax Business Owner
- Establishing Your Tax Office
- Tax Office Operating Systems
- Buying a Tax Practice
- Marketing Planning
- Pricing Your Services
- Mass Media Advertising
- Digital Marketing
- Your Website
- Social Media Marketing
- Neighborhood Marketing
- Client Retention Strategies
- Recruiting & Training Tax Preparers
- Employee Pre-work Training
- Motivating & Retaining Employees
- Continuing Education
- Diversification for Year-round Revenue
- IRS Circular 230, Due Diligence & Fraud Protection
- Helping Your Client Deal with the IRS
- Peer Support & Tax
- Professional Associations
- Topics Include:
- Step 3: Follow the Tax Business Start-Up Checklist